#CEXvsDEX101 For the beta stage of the Pi Network project, the mobile application simulates the mining system which will be properly launched when the mainnet is fully functional. The mobile application users take part in block validation and receive rewards in Pi cryptocurrency.

When active, miners on the mobile app connect to one or more nodes. When connected, mobile miners inquire if the transaction has been recorded on the ledger. They also get the most recent block number and the hash value of that block.

Rewards for mining the block are distributed to the node owners and the mobile miners.

Consensus Algorithm

Pi Network runs the Stellar Consensus protocol (SCP). SCP was developed by David Mazières, Chief scientist at Stellar Development Foundation for the Stellar blockchain. It uses a novel mechanism called Federated Byzantine Agreements to ensure that updates to a distributed ledger are accurate and trustworthy.